Key Takeaways
- BlackRock has partnered with FCF Pay to allow car purchases using Bitcoin.
- Honda is not the first Japanese motor company to accept Bitcoin.
- SBI Motors began accepting Bitcoin back in May of 2022.
BlackRock, the world’s largest asset manager, has amended its Bitcoin exchange-traded fund (ETF) to address investor concerns about Coinbase’s onchain settlement process. A filing submitted on Sept. 16 to the Securities and Exchange Commission (SEC) mandates that Coinbase, the custodian for BlackRock’s Bitcoin ETF, complete Bitcoin withdrawals within 12 hours of receiving client instructions.
The amendment comes after growing speculation from investors, who have been questioning Coinbase’s Bitcoin ETF custodial practices. Many worried that Coinbase might be handling “paper BTC” instead of actual Bitcoin. Despite these concerns, Coinbase CEO Brian Armstrong clarified that all ETF transactions are settled onchain, although not all addresses are publicly disclosed. Armstrong further noted that Coinbase is audited annually by Deloitte.
Coinbase currently serves as the custodian for 10 of the 11 Bitcoin spot ETFs in the U.S. and is a major player in the ETF market. BlackRock’s IBIT Bitcoin ETF alone holds over $22.5 billion worth of Bitcoin onchain, giving it a 38% market share.
While investor concerns persist, Bloomberg senior ETF analyst Eric Balchunas believes Bitcoin ETFs have helped stabilize the market rather than contribute to its recent price slump. He emphasized that “native HODLers” have been the primary sellers of Bitcoin.
